5 Best Dividend Paying Stocks to Buy Now

In this article, we discuss the 5 best dividend paying stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Dividend Paying Stocks to Buy Now.

5. Sysco Corporation (NYSE: SYY)

Number of Hedge Fund Holders: 42
Dividend Yield as of August 2: 2.53% 

Sysco Corporation (NYSE: SYY) ranks 5th on the list of 10 best dividend paying stocks to buy now. The Texas-based firm sells food products, kitchen equipment, and tabletop items. Sysco Corporation (NYSE: SYY) pays an annual dividend of $1.88 per share and yields at 2.53%. The consumer goods firm has increased its annual dividend for the last 41 years.

UBS analyst Mark Carden started coverage on Sysco Corporation (NYSE: SYY) with a Buy rating on August 3, with a price target of $89 per share, stating that the company’s flexible balance sheet will be beneficial to restaurants post-COVID 19. 

The company has a market cap of $37.44 billion. In the fiscal third quarter of 2021, Sysco Corporation (NYSE: SYY) reported an EPS of $0.22, beating estimates by $0.10. The company’s fiscal third-quarter revenue came in at $11.8 billion, beating estimates by $12.39 billion. 

At the end of the first quarter of 2021, 42 hedge funds in the database of Insider Monkey held stakes worth $2.72 billion in Sysco Corporation (NYSE: SYY), up from 40 hedge funds in the previous quarter holding stakes worth $2.51 billion.

Broyhill Asset Management mentioned Sysco Corporation (NYSE: SYY) in its Q1 2020 investor letter. Here is what the fund said:

“Sysco (SYY), the largest food distributor in the country, provides essential services to restaurants, grocery chains, and convenience stores. Although the company will likely face short-term challenges, we believe management has a generational opportunity to consolidate share amongst smaller operators who don’t have the cash or access to capital to survive. We purchased shares at the company’s lowest valuation in its history.”